Centris Group Reports Second Quarter Results; Quarterly Revenues up 19%; EPS advances 16%.COSTA MESA Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. , Calif.--(BUSINESS WIRE)--July 23, 1998--The Centris
The genus Centris contains over 110 species of large apid bees occurring from Kansas to Argentina). Group Inc. (NYSE NYSE See: New York Stock Exchange :CGE CGE Computable General Equilibrium CGE Conference des Grandes Ecoles (French) CGE Carrier Grade Edition (COTS Linux platform) CGE Classic Gaming Expo (game) ), a provider of domestic and international insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. products and services through its operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Thursday Thursday: see week. reported revenue gains in all of its business lines for both the second quarter and the first six months of 1998. Revenue advanced 19% during the second quarter and 13% for the first six months of 1998, while earnings per share improved 16% to $0.36 in the second quarter and 15% to $0.70 for the first half. Chairman and Chief Executive Officer David L. Cargile said: "Our performance this year highlights our continued emphasis on expanding our sources of premium and fee based revenue. Although we experienced solid revenue growth overall and improved earnings, industry conditions remain highly competitive in both our medical lines and property/casualty business segments. "Also, our quarterly results were adversely impacted by a number of major storms, which made this the worst quarter of catastrophic losses for us since the Northridge earthquake The Northridge earthquake occurred on January 17, 1994 at 4:31 AM Pacific Standard Time in the city of Los Angeles, California. The earthquake had a "strong" moment magnitude of 6. in 1994. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these occurrences, the fundamentals of our reinsurance businesses remain sound," continued Cargile. Financial Results For the three months ended June June: see month. 30, 1998, revenues increased 19% to $58,193,000 from $49,033,000 for the prior year's second quarter. Net income advanced 20% to $4,501,000, or $0.36 per share, compared with $3,748,000, or $0.31 per share, for last year's second quarter. Net operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the second quarter of 1998 was $3,231,000, or $0.26 per share, vs. $3,697,000, or $0.30 per share, for the 1997 second quarter. Second quarter results were impacted by a 20% increase in investment income to $3,259,000, capital gains of $1,955,000 and losses from catastrophes of $1,300,000. For the six months ended June 30, 1998, revenues advanced 13% to $112,110,000 compared with $99,226,000 for the first half of 1997. Net income improved 18% to $8,735,000 from $7,408,000 for the first six months of 1997. Net operating income for the six months was $7,048,000, or $0.56 per share, vs. $7,242,000, or $0.60 per share, in the comparable prior year period. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results for 1998 include a 19% increase in investment income to $6,408,000, capital gains of $2,596,000 and losses from catastrophes of $1,600,000. All per-share results are reported on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with the provisions of Statement of Financial Accounting Standards No. 128, "Earnings Per Share." In addition, all 1997 share amounts have been adjusted to reflect the Feb. 27, 1998 two-for-one stock split. -0-
Medical Lines Results
(000 omitted)
Three Months Ended Six Months Ended
June 30, June 30,
% %
1998 1997 Change 1998 1997 Change
Premiums
earned $27,279 $25,538 7% $53,119 $50,570 5%
Commissions
and fees $ 8,982 $ 8,140 10% $17,520 $16,182 8%
Pre-tax
income $ 4,069 $ 4,123 (1)% $ 8,853 $ 8,231 8%
For the six-month period of 1998, premiums earned increased 5% to $53,119,000 from $50,570,000 in the comparable 1997 period, reflecting growth of 4% in the company's medical stop-loss stop-loss, n a general term referring to that category of coverage that provides insurance protection (reinsurance) to an employer for a self-funded plan. line and 71% in the provider excess line. For the second quarter of 1998, premiums earned increased 7% to $27,279,000 from $25,538,000 in the second quarter of 1997. The medical stop-loss and provider excess lines grew 3% and 64%, respectively, in the second quarter of 1998. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income in the 1998 periods reflects the run-off run-off n (in contest, election) → desempate m (= extra race); carrera de desempate run-off n (in contest, election) → of certain business acquired as part of the company's purchase of Global Excess Re plus increases in medical stop-loss formula reserves consistent with current competitive market conditions. -0-
Property/Casualty Results
(000 omitted)
Three Months Ended Six Months Ended
June 30, June 30,
% % % Change
1998 1997 Change 1998 1997 Change
Premiums
earned $16,562 $12,565 32% $32,155 $26,816 20%
Pre-tax
income $ 1,406 $ 2,042 (31)% $ 2,957 $ 3,796 (22)%
The property/casualty reinsurance marketplace remains highly competitive. The company reported that improvements in premiums earned are primarily due to business from the east coast treaty branch, acquired in September September: see month. 1997, which was renewed into the company's USF USF University of South Florida USF Universal Service Fund (often part of phone bill in US) USF University of San Francisco USF University of Sioux Falls USF University of St. RE subsidiary. Total revenues for the segment grew 31% for the second quarter and 21% in the six-month period vs. the comparable prior-year periods. Declines in pre-tax income in the 1998 periods reflect the impact of severe wind, hail and tornado tornado, dark, funnel-shaped cloud containing violently rotating air that develops below a heavy cumulonimbus cloud mass and extends toward the earth. The funnel twists about, rises and falls, and where it reaches the earth causes great destruction. activity during late winter and early spring of 1998 in the Midwestern and Southeastern regions of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. which produced $1,300,000 and $1,600,000 of losses from catastrophes during the second quarter and six-month periods, respectively. There were no losses from catastrophes in the first six months of 1997. Financial Position At June 30, 1998, total assets increased 7% to $368,381,000 and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. improved 7% to $125,954,000 compared to the 1997 year-end. Investments at June 30, 1998 totaled $234,445,000 vs. $223,824,000 at Dec. 31, 1997. The investment portfolio reflects a current allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of approximately 94% in fixed-income investments, both taxable and tax preferenced, with an "AA" average fixed income portfolio rating, and 6% in equities. The portfolio does not hold any real estate investments, derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. , high yield bonds, private placements or mortgage loans. The company's book value per share at June 30, 1998 increased to $10.32 from $9.67 at Dec. 31, 1997. The statutory surplus of the company's insurance operations was $117,750,000 as of June 30, 1998. The statutory combined ratios of the company's insurance operations for the three-month and six-month periods of 1998 are outlined in the following table: -0-
Three Months Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Medical Lines
Loss and LAE 76.1 71.4 73.4 71.4
Expense 25.0 27.0 26.7 27.2
Combined 101.1 98.4 100.1 98.6
Property/Casualty
Loss and LAE 78.3 74.0 78.1 72.4
Expense 25.5 24.1 26.1 25.9
Combined 103.8 98.1 104.2 98.3
Total
Loss and LAE 76.9 72.2 75.2 71.7
Expense 25.2 25.9 26.5 26.7
Combined 102.1 98.1 101.7 98.4
The Centris Group operates complementary businesses based on its expertise handling specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. risk. It is a market leader in medical stop-loss coverages that produce revenues from both premiums and fees. Centris is also a provider of property/casualty reinsurance, excess and surplus lines insurance, special risk accident and health insurance products and reinsurance intermediary Intermediary See: Financial intermediary intermediary See financial intermediary. services. Other specialized risk operations include claim review, premium and claim auditing, prospective program review and runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. management. Among the most highly rated companies in its markets, The Centris Group conducts business both nationally and internationally through USBenefits Insurance Services Inc., USF RE INSURANCE COMPANY, USF Insurance Co. and INTERRA Reinsurance Group Inc. Centris' insurance operations are rated "A" (Excellent) by A.M. Best Company and USF RE is assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. a claims paying ability rating of Aq (Good) by Standard & Poor's. For more information on The Centris Group via facsimile at no cost, call 800/PRO-INFO and dial client code "CGE" or visit the company's Website at www.thecentrisgroup.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Some of the statements included within this release which are not historical facts may be considered to be forward-looking statements within the meaning of section 29A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and therefore are subject to certain risks and uncertainties which could cause the actual results to differ materially from those suggested by such statements. Such risks and uncertainties include, but are not limited to the following: catastrophic losses in the company's insurance lines or a material aggregation of such losses; changes in federal or state law affecting an employer's ability to self-insure or other adverse regulatory changes; the adequacy of the company's reinsurance program; general economic conditions in this country or abroad; adverse developments in the securities markets and their impact on the company's investment portfolio; the effects of competitive market pressures within the medical lines or property/casualty marketplaces; the effect of changes required by generally accepted accounting practices or statutory accounting practices; and other risks which are described from time to time in the company's filings with the Securities and Exchange Commission. The words "believes," "anticipates," "expects" and similar expressions are intended to identify forward-looking statements. -0-
THE CENTRIS GROUP, INC.
Consolidated Income Statements
(Amounts in thousands, except for per share data)
(Unaudited)
Quarter Ended Six Months Ended
June 30, June 30,
1998 1997 1998 1997
Revenues:
Premiums Earned $ 43,840 $ 38,103 $ 85,273 $ 77,386
Commissions and Fees 9,139 8,140 17,833 16,182
Net Investment Income 3,259 2,712 6,408 5,403
Realized Investment Gains 1,955 78 2,596 255
Total Revenues 58,193 49,033 112,110 99,226
Operating Expenses:
Losses and Loss Adjustment
Expenses Incurred 33,735 27,526 64,116 55,522
Policy Acquisition Expenses 11,881 11,083 24,047 22,992
General and Administrative
Expenses 5,339 4,447 9,970 8,901
Interest 547 614 1,103 1,228
Total operating expenses 51,502 43,670 99,236 88,643
Income before income taxes 6,691 5,363 12,874 10,583
Income tax expense 2,190 1,615 4,139 3,175
Net income $ 4,501 $ 3,748 $ 8,735 $ 7,408
Basic earnings per share $ 0.37 $ 0.32 $ 0.72 $ 0.62
Diluted earnings per share $ 0.36 $ 0.31 $ 0.70 $ 0.61
THE CENTRIS GROUP, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
June 30, Dec. 31,
1998 1997
ASSETS
Investments, at market
(amortized cost $224,979 at
June 30, 1998; $214,407 at Dec. 31, 1997) $234,445 $223,824
Restricted cash and short-term investments 29,099 27,947
Cash and invested cash 5,537 11,122
Reinsurance and premiums receivable 80,045 60,743
Accrued investment income 3,489 3,196
Other assets 15,766 16,416
TOTAL ASSETS $368,381 $343,248
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Amounts due insurance companies $ 47,632 $ 36,470
Losses and loss adjustment expenses 130,630 116,801
Unearned premiums 31,854 30,249
Notes payable 29,850 32,500
Accounts payable and accrued expenses 2,461 9,638
Total liabilities 242,427 225,658
Stockholders' equity 125,954 117,590
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $368,381 $343,248
Total outstanding shares 12,199 12,166
Book value per share $ 10.32 $ 9.67
CONTACT: The Centris Group Inc., Costa Mesa Howard S. Singer, 800/550-3285 www.thecentrisgroup.com or The Financial Relations Board, 310/442-0599 Karen Taylor Karen Taylor is an English comedienne from Barrow-in-Furness, Cumbria. She is a former finalist in the prestigious Daily Telegraph Open Mic Award[1] and has fronted her own sketch show on BBC Three, entitled Touch Me, I'm Karen Taylor. (general info), Moira Conlon (analysts), or Marjorie Ornston (media) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion